Evolution Fuels to Commence Retail Fuel Operations

Company Begins Strategic Alliance with Premier Commercial Retail Fuel Station Developer

DALLAS, Feb. 2 -- Evolution Fuels, Inc. today announced that it has finalized negotiations with J&J Developments, Inc. ("J&J") resulting in the execution of a binding letter of intent to lease an initial three retail fuel stations owned by J&J, and the option to lease an additional ten fuel stations and truck stop travel plazas.

As part of its overall strategic plan, the Company has formed an alliance with J&J, a premier commercial real estate developer with a strong focus on fuel stations, convenience stores, and truck stop travel plazas. This alliance extends Evolution's planned rollout region to the state of Kansas, and helps to expedite the plan in other areas of the southwestern United States.

The first lease has been executed for a fuel station located at 206 Leavenworth, in Manhattan, KS. This station is currently in operations under the Evolution Fuels brand. The Company expects to have the re-imaging of the station completed within the next two weeks and to implement sales of blended ethanol as quickly as possible. This station is located in a high traffic area (average of over 24,000 vehicles per day) surrounded by major retailers and a large shopping mall, and is the first in a series of planned rollouts in Kansas.

The second station is a newly built fuel station/convenience store strategically located on a prime intersection that serves as a major corridor within eastern Topeka (average of over 25,000 vehicles per day). The Company expects to execute the lease for this fuel station within the next few days, and expects the scheduled construction to be complete and the station operational by the end of this month.

The third station is a newly built fuel station/convenience store and is also located on a prime intersection of Topeka that experiences an average traffic count of over 18,000 vehicles per day. The Company expects to execute the lease for this fuel station within the next few days, and expects the scheduled construction to be complete and the station operational by mid-February.

As part of its letter of intent with J&J, the Company also has an option to lease six additional fuel stations and four additional truck stop travel plazas, all in prime locations, with all truck stops to be operated under Evolution's "Legends Travel Plazas" brand. As part of the terms of the agreement, the Company has a one-year option to acquire any of the facilities that it leases from J&J, including the initial three stations in Topeka and Manhattan, KS.

"The retail locations in Kansas afford Evolution the opportunity of immediate operations of top-flight fuel stations in an excellent geographic region for the sale of blended renewable fuels," stated Evolution Fuels CEO, Dennis McLaughlin. "We are pleased to have an ideal partner in J&J for the rapid rollout of the Evolution Fuels brand in Kansas, and for the potential rollout of more stations in other strategic areas in the near future. We will continue to focus our efforts on similar rollouts in selected regions of the southwestern and southeastern United States."

The Company also announced, in accordance with its strategic plan, that it is currently finalizing the lease agreement for its first Dallas station located in the heart of the Dallas metropolis at the intersection of Oak Lawn Ave. and Lemmon Ave., immediately adjacent to the upscale Park Cities neighborhood. The Company expects to execute the lease by the end of this week, followed by several weeks of engineering and construction.

The Company also announced it would not pursue the lease of a second station in Dallas at the intersection of Knox St. and Travis St., pursuant to a non-binding letter of intent previously announced in November of last year. Likewise, upon further consideration, the Company has also decided not to acquire two fuel station locations, one in Alabama and one in Mississippi, that were previously announced in October of last year. After extensive due diligence, the Company determined that at this time, these locations did not provide the necessary branding opportunity and acceptable level of profitability necessary to proceed.

About Evolution Fuels, Inc.

Evolution Fuels, Inc. endeavors to market renewable transportation fuels at retail fuel stations that will provide superior quality fuels to competing fuel stations by virtue of the blending capability within the fuel dispensers at its stations and offering the blends at competitive prices. The stations will offer ethanol/gasoline blends of fuel including 10% ethanol/90% gasoline (E10), 20% ethanol/80% gasoline (E20), 30% ethanol/80% gasoline (E30), and 85% ethanol/15% gasoline (E85). The latter three blends are intended for flex-fuel vehicles, although recent studies have shown that many legacy vehicles on the road today may use E20 and E30 blends without incurring damage to the engines or fuel systems. The Company's plan calls for the development of a chain of renewable fuel stations in the southwestern and southeastern United States that will be a combination of "Evolution Fuels"-branded fuel stations/convenience stores and western-motif truck stops modeled after Willie's Place Truck Stop in Carl's Corner, TX. The Company's Web site is www.evolution-fuels.com.